|Special Expertise - Assessing the Economics of Personalized Medicine
In Personalized (stratified) Medicine the selection of optimal treatment depends on a patient's genetic makeup. Typically, the presence or absence of a biomarker predicts the response to a particular therapy. Certain personalized treatments may produce savings to payers, while others may increase costs.
It is not well understood whether more widespread use of personalized medicine will, overall, reduce or increase spending. Bioscience Valuation is a specialist in assessing the economics of personalized medicine. BSV may support ist clients to
- analyze the economic impact of a particular personalized treatment on the healthcare system,
- determine the cost-effectiveness of companion diagnostics and personalized drugs,
- support price finding for personalized medicines,
- assess the economics of investing in personalized medicine (net benefit of reduced attrition rates and decreased trial size, but smaller markets and additional effort to develop a companion diagnostic).
A major European investment bank wished to determine risks and potential returns of investing in companies that are active in the development and marketing of personalized medicine. Bioscience Valuation analyzed effectiveness, safety and pricing, among other parameters, of current personalized treatments to determine benefits and costs for patients, physicians and payers.
Furthermore, BSV assessed the economics of R&D investment from pharma's point of view. Market sizes shrink (through stratification of patients) and the development of companion diagnostics generates additional costs; however, personalized drugs are generally sold at a premium and may reduce clinical development costs (for the Rx) as well as attrition rates. The comprehensive Bioscience Valuation report illustrates chances and risks for all stakeholders.